General News of Friday, 17 January 2020
The embattled Chief Executive Officer of collapsed Beige Bank, Mike Nyinaku, has been granted bail in the sum of GHC352 million with two sureties.
Circuit Court Judge, Emmanuel Essandoh granted the bail application after the court learnt through prosecutors that the accused has been on admission at the Police Hospital when he took ill on Thursday.
Mike Nyinaku has been on remand in police custody since Tuesday, January 14, 2020.
Earlier a bail application by his lawyers was dismissed when he was arraigned before court.
Mr. Nyinaku is facing trial over his alleged role in the collapse of his bank.
In June 2019, the receiver for Beige Bank, Nii Amanor Dodoo sued him together with 12 of his subsidiary companies to a tune of over GHc1.3 billion.
Beige Bank collapse
The Governor of the Bank of Ghana (BoG) disclosed the reasons for the solvency of Beige bank which has been taken over.
Dr Ernest Addison revealed at a press conference that Beige Bank obtained its banking licenses by false pretenses.
An inventory asset and property report filed by the Receiver to the Bank of Ghana revealed that Beige Bank had total assets of GHc 494 million.
Out of the figure, GHc 282 million, representing 57% were loans and securities.
According to the report, the bank gave an amount of GHc 274 million, constituting 31% of the loans to related parties.
The Receiver said Beige bank did not adhere to credit administration policies and had inadequacies in recovery efforts.
Michael Nyinaku together with 12 of his subsidiary companies were subsequently sued by the Receiver of the defunct company, Nii Amanor Dodoo.
He is expected to cough up over GHc1.3 billion.
Amanor Dodoo who dragged Nyinaku and 12 of his subsidiaries, including Legacy Pension Trust Ltd, The Beige Group Ltd, BBS Logistics and Beige Village to court, in his writ, insists that the defunct bank transferred several millions of Ghana cedis to the said companies ranging between GHc1 million and over GHc100 million.